OneBeacon buys $156.4 million 5.875% notes in offer for $200 million

By Susanna Moon

Chicago, June 1 - OneBeacon Insurance Group, Ltd. said its indirect wholly owned subsidiary, OneBeacon U.S. Holdings, Inc., completed the cash tender offer for up to $200 million principal amount of its $625,582,000 outstanding 5.875% senior notes due 2013.

Investors tendered $156.4 million principal amount of the notes as of 11:59 p.m. ET on the expiration date of May 28. They tendered $155,229,000 principal amount of the notes by early tender deadline of 5 p.m. ET on May 14. The offer began May 3.

The total purchase price for the notes is $165,766,248, including accrued interest.

After settlement of the offer on June 1, there is $419,864,000 principal amount of the notes outstanding.

The notes are irrevocably and unconditionally guaranteed by White Mountains Insurance Group, Ltd.

As previously noted, the total payment is $1,057.50 for each $1,000 principal amount tendered by 5 p.m. ET on May 14, including an early tender payment of $30.00 per note.

Barclays Capital Inc. (800 438-3242 or collect 212 528-7581) is the lead dealer manager, and Bank of America Merrill Lynch is the co-dealer manager. Bondholder Communications Group, LLC (888 385-2663 or 809-2663, attn: Olivia Banks) is the tender agent and information agent.

The funds required to pay for the purchase and for related fees and expenses were to come from cash on hand or from sales of investments.

OneBeacon, formerly known as Fund American Cos., Inc., is a Bermuda-domiciled holding company.

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